Nav: Home > Coffee >

Brazilian Coffee Quality Enhancement Becomes Second Largest Source Country for US ICE Exchange Coffee Inventory!

Published: 2026-01-27 Author: FrontStreet Coffee

Last Updated: 2026/01/27, Professional coffee knowledge exchange. For more coffee bean information, please follow Coffee Workshop (WeChat official account: cafe_style). COVID-19 has impacted the lives and economies of people worldwide, and everyone is seeking solutions to help society return to relative normalcy as soon as possible. And despite all the negative impacts brought by the pandemic, the sustainability of Brazil's agribusiness has enabled the country to 2

Professional coffee knowledge exchange and more coffee bean information, please follow Coffee Workshop (WeChat public account: cafe_style)

COVID-19 has affected the lives and economies of people worldwide, and everyone is seeking solutions to restore society to relative normalcy as soon as possible. Despite all the negative impacts of the pandemic, the sustainability of Brazil's agribusiness enabled the country to make progress and break records in 2020: Brazil's coffee exports in 2020 exceeded $100 billion for only the second time in history.

The organization, competitiveness, and efficiency of Brazil's coffee export sector are crucial to the success of the entire production chain, such as the price index paid to growers, which measures the percentage of FOB (Free On Board) export prices effectively transferred to growers. In FOB transactions, the buyer is responsible for dispatching vessels to transport the goods, while the seller must load the goods onto the buyer's designated vessels at the designated port of shipment within the contractually specified period and promptly notify the buyer. The risk transfers from the seller to the buyer when the goods are loaded onto the designated vessel at the port of shipment.

The Brazil Robusta (Conilon) price index rose to 89.0% in the third quarter, identical to Brazil's 2019 average Robusta price index, while Brazil's Arabica coffee bean price index fell to 72.7% in the third quarter. Notably, third-quarter prices reflect that FOB prices were largely transferred to domestic coffee prices. Additionally, the competitiveness and organization of the export sector can be seen in its extensive use of futures market tools, such as hedging future contracts and barter operations for purchasing agricultural inputs and machinery. Supported by export trade and market information, growers have limited opportunities for sales and income, which is directly related to the sustainability of Brazil's coffee agribusiness.

Brazil Coffee Quality Achievements

In addition to achieving a record harvest in 2020, Brazil's coffee quality has also improved significantly. Recognition of Brazil's coffee quality can be observed from the coffee inventory data released by the US ICE Exchange at year-end. Because the ICE Exchange has historically delivered mainly washed coffee beans, while Brazil's coffee beans are primarily natural-processed. Since Brazil began providing semi-washed coffee beans to the exchange last August, Brazil's share of exchange inventory has continued to increase both in quantity and percentage. As of January 22, data provided by ICE shows that Brazil's semi-washed coffee accounts for over 35% (more than 560,000 bags) of ICE warehouse inventory, becoming the second-largest inventory source country after Honduras. With ICE's willingness to accept Brazil's semi-washed coffee beans, concerns about future delivery inventory volumes at ICE will be alleviated.

2021 Production Outlook

Brazil's National Supply Company (Conab) will soon release the first official survey report for the 2021 coffee year. Due to Brazil's biennial negative production effect and drought in some Arabica coffee-growing areas, Brazil's 2021 Arabica coffee production is expected to decrease. On the other hand, Brazil holds positive expectations for 2021 Robusta production.

Sustainability Initiatives

The Brazilian Coffee Exporters Council (Cecafe) expressed support for the implementation of 2021 waste monitoring, producer right-to-know, and new theme planning programs. These include, under the coordination of the Global Coffee Platform, Brazilian Coffee Exporters Council, and National Pact Institute, educating growers on the correct and safe use of pesticides, as well as a planned family inheritance coffee cultivation project.

Additionally, after the new US President Biden took office and rejoined the "Paris Agreement" (the climate change agreement signed in 2016), this will undoubtedly exert strong pressure on the Brazilian government to demonstrate commitment to reducing "illegal deforestation" within its territory.

For more specialty coffee beans, please add FrontStreet Coffee on private WeChat, ID: kaixinguoguo0925